Canadian Shipper


Internet of Things (IoT) triggers new “impulse” e-commerce purchasing

SAN FRANCISCO, Cal.–E-commerce, m-commerce and social purchases have dominated the headlines as top vehicles and drivers for consumer purchases for the past decade. Today, a new “contextual” consumer is in town whose reliance on IoT and other mobile devices creates an environment for greater impulse purchases. Almost 1 in every 2 dollars spent online will come from online purchases made using a mobile device by in 2020, fueled by contextual shopping, mobile first mentality, and increasing reliance on mobile devices, said JAVELIN’s recent report, 2016 Online Retail Payments Forecast. The report examines the new IoT and mobile devices and applications consumers are using to purchase through online and mobile channels.

Buy buttons were introduced in 2014 to enable retailers to bring goods and services into social media, allowing consumers to casually browse and purchase in-app, without ever having to leave the social media site.

Similarly, IoT devices are smart devices with embedded and networked sensors and the ability to use wi-fi or wired connections to transmit information, allowing consumers to purchase directly from the device with each interaction. For example, a consumer would place an Amazon Dash Button to the Tide laundry detergent for the washing machine and press it to reorder a new box when the detergent runs low. These IoT devices such as Dash buttons, Amazon Echo/Alexa, and Samsung Family Hub, and mobile apps like Fandango, Papa John’s, and Ikea, are becoming more relevant to consumers by being positioned within a home or office and able to engage in commerce at a moment’s notice, said the study.

“As consumers move to a ‘mobile first’ mentality when it comes to e-commerce, they are relying on the most frictionless payments to complete purchases ‘on the go’,” said Michael Moeser, Director of Payments at JAVELIN. “Consumers will increasingly gravitate to using payment forms that offer the easiest, fastest and most secure payment methodology, particularly one that also integrates shipping/billing addresses as this removes the challenges of typing on a smaller phone keyboard.”

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